Mad Money Mailbag: Finding Free Cash Flow

Plus, a resource for conference call transcripts and comments on Pepsi, Chesapeake and more.

Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.

You mentioned that you like to read transcripts from important earnings conference calls. Where can I find these?

-- Chris from Massachusetts

James J. Cramer: Unless you can write really fast, you must rely on a paid service like I do. I get my transcripts from a Thomson Financial service called StreetEvents.

Why do you like Ingersoll-Rand (IR) now, when conventional wisdom says you should sell the smokestack stocks after several interest rate hikes?

-- Richard from Texas

James J. Cramer: Even though raw costs are rising, companies like Ingersoll have been able to pass along a lot of these costs to customers. But the reason I particularly like the company is that it will receive a lot of orders from the government as part of the massive rebuild after Hurricane Katrina and Hurricane Rita.

What is free cash flow?

-- Leo from California

James J. Cramer: The simplest answer is that it's operating cash flow minus capital expenditures. If you don't know what those terms mean, don't fret; free cash flow is essentially how much money a company has left over once it has paid its bills. Using this measure instead of reported net income decreases the likelihood that a company can make its numbers look better through financial shenanigans.

James J. Cramer: This is a great energy company, and it has a great CEO in Aubrey McClendon. Not only does he use his own funds to buy massive amounts of the company's stock, but he continues to make the right moves and create shareholder value.

What was the name of the African energy company you mentioned on Friday?

-- Max from New York

James J. Cramer: It was Sasol ( SSL), out of South Africa. I believe the company can generate record earnings next year, as fuel demand continues to rise in that region.